Senate committee hears competing views on bill to require Texas arbitration for surplus-lines insurance

Senate Bill 455, which would require arbitration of certain surplus‑lines insurance disputes to take place in Texas and be governed by Texas law, drew extended testimony before the Committee on Business & Commerce on Oct. 12, 2025.

The bill’s author, Senator José Middleton, told the committee the measure is intended to keep routine dispute resolution for Texas policyholders in Texas: "For many claims, the statute of limitations for breach of contract and property damage in New York is 1 year. On the other hand, in Texas, it can be up to 4 years," Middleton said, arguing that New York arbitrations make claims "much more expensive, cumbersome, time consuming and frankly dissuade policyholders from seeking better outcomes."

The bill’s nut graf is straightforward: proponents said arbitration clauses that send Texas disputes to New York impose time and travel costs and unfamiliar…